Equities globally have lost almost $8 trillion of value this month, set for the biggest wipeout since the height of the financial crisis a decade ago on growing concerns over slowing economic and earnings growth, among others.
Slowing economic and earnings growth plague global stocks
Equities globally have lost almost $8 trillion of value this month, set for the biggest wipeout since the height of the financial crisis a decade ago on growing concerns over slowing economic and earnings growth, among others.
Stocks worldwide face more tests this week amid a slew of earnings releases. Traders are paring wagers on Fed rate hikes for next year, with markets now expecting fewer than two quarter-point increases in 2019, compared with three that policy makers project.
“I still think there is room for a bit of a downside to go because I do see this as being largely a structural shift in markets,” Kyle Rodda, a market analyst at IG Group in Melbourne, said on Bloomberg Television. “The overall sentiment is still to the downside, is still quite bearish and there will be a little while for this correction to play out.”
- Bloomberg
What are we waking up to?
The stock market selloff continues in Asia this morning after Friday’s rout in the US. US futures have opened down again this morning. US Treasury yields are lower as US CPI data came out lower and the likely quicker pace of rate hikes by the Fed eased. The 10 year yield fell to 3.08% from 3.14%.
The euro is off its lows at 1.1400 despite political setbacks for German Chancellor Angela Merkel over the weekend. The euro was supported by Italy keeping its credit rating despite concerns over the budget. The rand is off Friday’s lows at 14.5900 as we have President Cyril Ramaphosa heads off to the G20 Africa summit in Berlin. Brazil has a new right wing President and the real has reacted positively.
Gold still holding above $1 230.00.
Plenty of data out this week in both the US and Europe which could influence markets.
- TreasuryONE
Strong US data, dollar keep pressure on EMs
Global market sentiment remains under pressure in the wake of the US/China trade war while strong data from the US and a strong dollar are keeping the pressure firmly on emerging markets, including the rand, says Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions.
With little activity on the data side today, she expects the rand to remain largely range bound with trade between R14.50 and R14.68.
Good news for the local economy, President Cyril Ramaphosa would certainly dub the South Africa Investment Conference 2018 as a success, managing to gain pledges to the tune of R290bn worth of investment into the local economy.Latest currency indicators:
USDZAR 14.6005
EURUSD 1.1390
EURZAR 16.6217
GBPUSD 1.2833
GBPZAR 18.7275
AUDZAR 10.3539
CADZAR 11.1373
CNYZAR 2.0984
ZARJPY 7.6577
CHFZAR 14.6181
- TreasuryONE
Good morning, welcome to Fin24's live markets blog.
At the start of the week, the rand begins trading slightly weaker at R14.60 to the US dollar, Asian shares extend their rout of last week after a fresh selloff on Wall Street and gold is flat at $1 232.36 an ounce.
Key figures around 02:30 GMT
Tokyo - Nikkei 225: Down 0.1% at 21 165.30 (break)
Hong Kong - Hang Seng: Down 0.3% at 24 654.76
Shanghai - Composite: Down 1.5% at 2 559.50
Euro/dollar: Down at $1.1389 from $1.1400 at 21:00 GMT on Friday
Pound/dollar: Up at $1.2830 from $1.2800
Dollar/yen: Up at 111.85 from 111.83 yen
Oil - West Texas Intermediate: Up 23 cents at $67.82 per barrel
Oil - Brent Crude: Up 28 cents at $77.90 per barrel
New York - Dow: Down 1.2% at 24 688.31 (close)
London - FTSE 100: Down 1.4% at 6 906.09 (close)
- AFP